JPM：SOHU 1Q07 results　

30 April 2007 7Pages

Sohu will report 1Q07 results after US market close on May 1.
• We expect Sohu to report revenue inline with our prior estimate of
US$33.3M vs. company guidance of US$32-34M. We expect
online display ad revenue to be US$ 22.9M, up 4% QoQ or 37%
YoY. WVAS (wireless value-added services) revenue forecast is
US$5.4M, down 20% QoQ. However, further downside is
possible, given the difficult market environment.
• We expect Sohu to report GAAP EPS of US$0.14, or adjusted
EPS $0.19, as against company guidance of US$0.18-0.20 (adj.).
• From our channel checks, top-tier portals have recently submitted
bids for online Olympics video broadcast rights. While bid results
are yet to be announced, we do not expect significant earnings
impact to Sohu. If Sohu were to outbid Sina (or other websites),
costs for such rights would likely be very high, and